Thousands more Queensland homeowners are set to receive a land tax bill letter for the first time after updated land valuations kicked in – but many will be eligible for an exemption.

If you get a tax bill for the property you live in, you won't need to pay it but you will need to advise the government.

This is what you need to do.

What is land tax?

Land tax is an annual tax that's calculated by adding up the taxable value of the freehold land you own in Queensland on June 30.

There are different rates according to the total value and the type of owner you are, Queensland Treasury says.

Who receives a land tax bill?

If you're an individual and the total taxable value of your land is $600,000 or more, you're liable for land tax.

If you reach that threshold for the first time, the government will send you a letter containing "information on land tax, available exemptions, and how to apply".

Available exemptions include the land you use as your home.

A Queensland Treasury spokesman says that as land values "increase, more landowners may reach the $600,000 threshold – and receive a letter about land tax – however many of these landowners will be eligible to claim an exemption on their home".

How many could be exempt?

Queensland Treasury expects to issue some 23,000 letters to individual landowners over the coming months.

Based on previous years, about 60 per cent of those are "expected to be granted a principal place of residence exemption", a spokesman says.

How do I claim an exemption?

According to the Queensland government website, you have to apply for an exemption through the Queensland Revenue Office.

Once that's been approved, that exemption will continue to apply while you meet all the requirements – meaning you don't have to lodge an application every year, unless you move address.

Why am I receiving a bill this year – when I haven't before?

The independent Valuer-General provided updated land valuations for Queensland after property assessments in October.

In April, Resources Minister Scott Stewart said independent Valuer-General Wally Kearnan took into account historical flood data when assessing the properties last year and that people could object if they disagreed with their updated valuations.

You will receive the bill because the value of your land has changed, passing the $600,000 individual threshold.

More than 10,200 letters were issued to individual landowners for 2021-22 – that's set to increase to 23,000 letters this financial year.

SOURCE: https://www.abc.net.au/news/2022-09-15/qld-land-tax-bill-letters-land-valuations-exemption/101443316